Singapore Airlines 2007 Annual Report Download - page 124

NOTES TO THE FINANCIAL STATEMENTS
31 March 2007
Singapore Airlines 122 Annual Report 2006-07
21 Associated Companies (in $ million) (continued)
Loans to associated companies are unsecured and have no foreseeable terms of repayments. Accordingly, the fair value
of the loan is not determinable as the timing of future cash fl ows arising from the loans cannot be estimated reliably.
The loans are interest-free, except for $2.6 million at 31 March 2007 (2006: $3.2 million), which bear interest at
3.0% per annum (2005-06: 3.0%).
Included in the loans to associated companies are cumulative redeemable preference shares issued by the Company’s
associated company, Virgin Atlantic Limited (“VAL”). The cumulative redeemable preference shares carry no entitlement
to vote at meetings. On a winding up of VAL, the preference shareholders have a right to receive, in preference to
payments to ordinary shareholders, the amount paid up on any share including any amount paid up by way of share
premium plus any arrears or accruals of dividend calculated down to the date of the return of capital irrespective of
whether such dividends have been earned or declared or not. The loan of $133.0 million bears interest at LIBOR plus
2.5% per annum (2005-06: 2.5%).
Amounts owing by associated companies are unsecured, trade-related, interest-free and are repayable on demand.
The associated companies at 31 March are:
Country of Percentage of
incorporation Cost equity held
and place (in $ million) by the Group
Principal activities of business 2007 2006 2007 2006
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Service Quality (SQ) Centre Pte Ltd
@
Quality service training Singapore
# #
50.0 50.0
Virgin Atlantic Limited *
++
Air transportation United Kingdom 1,549.02 1,549.02 49.0 49.0
Tiger Airways Pte Ltd
@
Air transportation Singapore 11.93 11.93 49.0 49.0
Asia Leasing Limited
+
Aircraft leasing Bermuda – 10.88 – 21.0
RCMS Properties Private Limited
^^+
Hotel ownership and management Singapore 31.16 31.16 20.0 20.0
AVISERV Ltd Infl ight catering services Pakistan 3.31 3.31 40.1 40.8
TAJ SATS Air Catering Limited
** Catering services India 24.65 24.65 40.1 40.8
SERVAIR-SATS Holding Company Investment holding company Singapore 0.51 0.51 40.1 40.8
Pte Ltd
+
PT Jasa Angkasa Semesta TBK
^^^+
Ground and cargo handling services Indonesia 105.53 105.53 40.8 41.4
Beijing Airport Infl ight Kitchen Ltd
+
Infl ight catering services People’s 13.88 13.88 32.8 33.3
Republic
of China
Beijing Aviation Ground Services Airport ground handling services - do - 5.71 5.71 32.8 33.3
Co Ltd
+
Maldives Infl ight Catering Infl ight catering services Maldives 0.29 0.29 28.7 29.1
Private Limited
Taj Madras Flight Kitchen Limited Infl ight catering services India 1.90 1.90 24.6 25.0
Tan Son Nhat Cargo Services Ltd
@@+
Airport ground handling services Vietnam 1.96 1.96 24.6 25.0
Asia Airfreight Terminal Co Ltd
^
Air cargo handling services Hong Kong 92.66 92.66 40.1 40.8
Evergreen Air Cargo Services Air cargo handling services Taiwan 16.16 16.16 20.5 20.8
Corporation
+
Evergreen Airline Services Airport handling - do - 5.23 5.23 16.4 16.6
Corporation
+
MacroAsia-Eurest Catering Infl ight catering services Philippines 2.03 2.03 16.4 16.6
Services Inc.
+
Mid-East Airport Services Liquidated Singapore
# #
– 41.6
Combustor Airmotive Services Servicing of aircraft engines and sale - do - 3.01 3.01 40.1 41.1
Pte Ltd
+
of aircraft engines and parts